Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) acknowledges that the Government has created more than a million jobs;

(2) commends the Government for standing up for Western Australia and for recognising that Western Australia is the engine room of the economy;

(3) recognises that production tax credits for critical minerals will encourage critical mineral processing in Western Australia and create secure jobs in the resources sector; and

(4) calls on the Opposition to support the production tax credits instead of blocking jobs and investment in Western Australia.

During the 2022 federal election, the former Prime Minister said that his top priorities were jobs, jobs and jobs. But guess who actually delivered? That's right—the Albanese Labor government. This government has created over a million jobs, and that is a record. Last month's job numbers show that Labor governments have delivered the lowest average unemployment for any Australian government in 50 years. And this isn't an accident; it's not a black swan event. This has been by design. This is something that Western Australia cares deeply about, and this is something that matters to Swan.

What does this actually mean in Swan? ABS data shows that there has been a six per cent job increase in the south-east region of Perth in December 2024, compared to December 2023. This region includes the entire Swan electorate and surrounds. This has resulted in almost 340,000 jobs for people in Swan that were employed during that period. Unemployment fell from 14,200 in December 2023 to 11,500 in December 2024. What a fantastic result! It highlights that our strong economic growth and jobs creation plan is working.

Our policies are delivering real results. Initiatives such as fee-free TAFE are equipping people with job-ready skills. Infrastructure investments and wage growth are strengthening our economy and creating opportunities. But there is more work to do.

We all know that Western Australia is the engine room of the Australian economy. WA has an abundance of minerals below the ground, but we also have amazing renewable energy resources above the ground. Our critical minerals are essential for solar panels, battery storage and wind turbines. As the mighty federal mining minister said, 'The world's pathway to net zero emissions runs through the Western Australian outback.' So it makes sense for us to explore the opportunities that are right under our feet. We have the opportunity to lay the foundations for our future, and we have a plan—the most significant initiative for Australia's resource sector in a generation, a plan to secure jobs and to secure our future. This includes a 10 per cent production tax incentive to boost critical mineral processing. As a former process engineer, I think this is pretty cool. That is a $17 billion investment over 14 years. The risk? Zero—no production, no tax credits.

Today's motion recognises the role that tax credits will play in critical mineral processing, and yet once again the coalition says no. A plan for the future? No. The support for industry? No. Secure jobs for Australians? No. It is not surprising the Liberals voted against tax cuts, higher wages and cheaper medicines. Under the Liberals, inflation would have soared, real wages would have fallen and living standards would have declined. They have no plan; they have no vision. Under Labor, inflation is down nearly a third of what we inherited, real wages are rising and living standards are improving. The extra 1.1 million people in jobs are grateful that these jobs are existing. But we must take steps to secure jobs for the future, and we won't let the Liberals hold us back. Their slogan is 'Back'—back to six per cent inflation, back to higher unemployment, back to wages going backwards.

Right now, the federal coalition are turning their backs on WA by not supporting this plan. They're turning their backs on Western Australians. Unlike the federal coalition, the WA Liberals and the Nationals understand the importance of the Albanese government policy. Libby Mettam, the leader of the WA Liberals has said, 'We will support this measure.' That's because they understand WA and they understand the resources sector. It has been supported by industry, too. Rebecca Thomson, CEO of the Chamber of Minerals and Energy, said, 'This measure recognises the federal government's commitment to supporting industry.' Perhaps the federal coalition should listen to WA and not overrule the WA Liberals once again. Processing critical minerals will turbocharge our resources sector and create jobs all across WA.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

Is there a seconder for the motion?

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Kate Chaney (Curtin, Independent) Share this | Link to this | Hansard source

This time last year, I moved a private members' motion calling on the government to increase Australia's international competitiveness for new energy industries, specifically with production tax credits. I'd been worried that Australia was not acting fast enough nor decisively enough to take advantage of the global transition to green energy. Coming from WA, I wanted to make sure that we are harnessing every opportunity to transition swiftly and profitably. The government later announced the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024, which the Leader of the Opposition immediately attacked, calling the production tax credits 'billions for billionaires,' displaying a sad lack of awareness about the opportunity for WA to continue to carry the country economically into a decarbonised world. This objection from the opposition was despite investors, climate finance experts and industry, including the Chamber of Minerals and Energy WA, supporting this bill. It was typical; opposition for the sake of opposition, rather than on its merits. Even the leader of the WA Liberal Party came out in support. This is because production tax credits, when designed correctly, make good sense for the economy. Here I am, 12 months later, rising once again to speak on production tax credits, and this time I call on the opposition to support the legislation that will mean we can actually get the production tax credit scheme off the ground. Can we please stop politicking and just get this done?

We all know that a stable investment environment is essential if we want to attract investment that we need to unleash our next wave of future prosperity. Companies are actively looking to develop and grow their renewable operations in Australia, but they need tangible confirmation of Australia's energy transition vision. We need to give investors the confidence and certainty that Australia will welcome and incentivise the new energy opportunities currently knocking on the door.

Production tax credits are a proven economic tool that have been used prolifically under the US Inflation Reduction Act. While the future of the US IRA is no longer certain under a Trump presidency, the enthusiastic uptake of clean energy production tax credits under the IRA up until now does at least show us that investors are motivated by this credit.

The Association of Mining and Exploration Companies, the Chamber of Minerals and Energy of Western Australia and the Minerals Council of Australia have all given evidence to a parliamentary committee supporting this bill. Rebecca Tomkinson of CMEWA has talked about the need for this bill to level the playing field in an intensely competitive global market. She said:

Passage of the legislation would set an important investment signal for further value adding activities and provide certainty to industry.

Production tax credits are a great way for government to derisk new investments. Instead of money paid upfront for something that may or may not turn into something tangible, production tax credits are payable only when a company delivers, so taxpayers are paying for results, not attempts. This helps with building a business case in a new industry, derisking the sort of forward-looking investment that we need.

I really want WA to benefit from the global transition to green energy. If the government wants to be on the right side of history, it needs to be creating policy settings like this that derisk and crowd in private investment. We have so many resources that are essential for the transition. Critical minerals like lithium, nickel, cobalt, silicon and rare earth elements are essential components in many rapidly growing clean energy technologies. They're critical because they can't be easily or cost-effectively substituted. WA accounts for around half of global lithium production and is a major exporter of nickel, cobalt, manganese and rare earth elements. We have a skilled workforce and access to export routes. We should be leading on critical mineral production. The world wants this stuff, and WA can provide it.

However, we're at risk of being left behind as other countries get the jump on us in transforming their economies. We have the opportunity to be well positioned for global trade in a decarbonised world, but if we're too complacent about it we will miss out. It's essential that we accelerate opportunities in WA's critical minerals sector and capitalise now on the position that critical and battery minerals will play in decarbonising the global economy. I urge members from across the House to have a bit of vision and support WA by getting behind production tax credits so we can make the most of the opportunities ahead and continue to carry the country economically.

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

I'm delighted to second the motion of my friend and colleague Zaneta Mascarenhas from the neighbouring electorate of Swan in the great state of Western Australia. In Hasluck, as in Swan, and right across Western Australia, the Albanese and Cook Labor governments are working with our vocational training institutions and universities, along with industry, to create the jobs for Western Australian workers. In WA, we have the lowest unemployment rate in the country, at 3.4 per cent. That's in a country where the Albanese government's policies have managed to keep unemployment low while getting inflation down from over six per cent to under three per cent.

Western Australia is the engine room of Australia's economy. It is one of the most productive and diversified mineral and petroleum regions on the planet. With only 11 per cent of the Australian population, WA is the major driver of external trade, producing almost half of Australia's total merchandise exports in 2023-24. We're proud of it, and rightly so, because it doesn't come easy. It means hard, technically challenging work—often away from partners, children and family—in tough terrain and sweltering conditions.

The Prime Minister has visited Western Australia more than any leader in memory. Why? Because he understands the importance of Western Australia and that our federal policies must be shaped by what's happening on the ground in WA. Introducing and passing the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 through the House in November was Labor's priority, because we understand the challenges and opportunities ahead for mining, manufacturing, innovation and exports in Western Australia.

By contrast, does the Liberal opposition leader understand WA? No, he doesn't. He voted against the bill in November. It's now February. Has the opposition wised up? The lack of Liberal speakers on this motion today is testimony to the fact that they are completely deaf to the needs of Western Australia. It's lovely to have the member for Riverina here, but New South Wales is not Western Australia, and it's certainly not Queensland either. How disappointing indeed. Just last week, Senator Reynolds indicated she would oppose the bill, and she said that we have 'quoted a couple of people in the mining sector who are supportive of this'. A couple of people? That's the understatement of the autumn sitting! If the senator or the member for Dickson think that they've got any friends in Western Australia on this matter, they might need to think again.

The production tax credit is about building the future of WA and Australia, and it is supported by the Association of Mining and Exploration Companies, the Chamber of Minerals and Energy of Western Australia and the Minerals Council of Australia. These organisations have hundreds of members that they represent and speak for. AMEC's CEO, Warren Pearce, expects mining companies to establish valuable projects in Australia rather than overseas as a result of this legislation. The Chamber of Minerals and Energy of Western Australia—WA's peak resources sector representative body—knows critical minerals are vital to the future. Minerals like copper, cobalt, lithium, nickel and what are known as rare earth elements are needed in electricity networks, electric vehicles and wind turbines, and that's just the start. The CEO of the Chamber of Minerals and Energy of Western Australia, Rebecca Tomkinson—who I'm very pleased the member for Curtin and the member for Swan referenced—expressed support for the Albanese Labor government's commitment to supporting industry and to level the playing field in what is an intensely competitive global market. She tells us:

Passage of the legislation would set an important investment signal for further value adding activities and provide certainty to industry.

The 21st century started 25 years ago; the Liberal and National parties are running out of time to join the new century.

We want to establish a hydrogen production tax incentive worth $2 a kilo of renewable hydrogen produced between 2027 to 2028 and 2039 to 2040 for up to 10 years per project. Regarding the US Inflation Reduction Act, Meg O'Neill, the CEO of Woodside, said:

It uses carrots, not sticks, to encourage decarbonisation.

It delivers tax credits once a project is up and running rather than up front subsidies—which is good for taxpayers.

And it focuses on reducing carbon, rather than picking winners …

The critical minerals production tax credit is the same. The peak bodies are wholly on board with this legislation. The opposition find themselves very much out in the cold. We need to start listening to what Western Australians are saying. Liberals, you need to pass it; Nationals, get on board.

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

The member for Hasluck is correct; Riverina is a long way from Western Australia. But, when the federal government hurts Western Australia, it hurts Australia, and, when Australia's hurting, Riverina is hurting. Now, I am outnumbered here in the chamber. We've got the members for Hasluck, Swan and Pearce and my good mate from Tangney. We've got the Greens leader, the member for Melbourne, just behind me. But I'm going to say a few things in this speech which probably nobody—save for my staff member behind me and maybe you, Deputy Speaker Young, I hope—will agree with.

Labor is very good on politics but not that good on policy. When you look at Western Australia, think of what this government has done to that fine state in not-quite-three years. They've banned live sheep exports. If there is one thing that has hurt—

We're talking Western Australia, Member for Hasluck, and I sat in silence when you made your contribution, so I'd ask you to give me the courtesy and do the same.

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

Stick to the motion.

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

I am sticking to the motion. The motion is very much about Western Australia. Here we go. Point (2)—and you seconded it—moves that this House 'commends the government for standing up for Western Australia and for recognising that Western Australia is the engine room of the economy'. Well, if sheep aren't part of Western Australia and aren't part of that engine room of the economy, then I don't know what is! It's your motion, Member for Hasluck, and I am speaking to that motion.

When you stopped the live sheep exports, not only did you hurt WA farmers; you hurt those Middle Eastern nations which relied on our live sheep. They relied on them for their traditional festivals and they relied on them for their customs, but what we told them was a big fat no. It was a diplomatic disaster. When the then agriculture minister, Senator Murray Watt—who I've got a little bit of time for—made the announcement that the live sheep trade was being banned, do you think he went and faced up to them? Do you think he went and eyeballed them? Do you think he went in front of them? No. He went to Perth and made the announcement, probably via Zoom. That was that; this was this. He got on the plane and came back to the eastern states. Shame on him! Part of politics is actually fronting up to those people who don't necessarily agree with you when you're making decisions on their livelihoods, and he did not. For those Western Australian sheep farmers, I praise them. I applaud them.

Let me tell you that the first order of business when we get back into government will be to restore this trade. This trade leads the world in animal welfare, leads the world in making sure that we take care of those animals on those ships. Yes, they had some improvement to do—no question. But to suggest that other nations which will now fill the void left by Australia if animal welfare is the first port of call for them—if you think that, you're vastly mistaken, because we had in place the Exporter Supply Chain Assurance System. We had in place a system by which the sheep's pants were measured, their pen sizes were improved and the ventilation on the ships was improved. It was a good trade. Sheep, at the end of the day, are bred for meat. They're bred for meat.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

Order! The member for Hasluck was heard in silence, and I'll ask her to show the same respect to the following speakers.

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

We're telling those farmers: 'We don't want your business. We don't want you to do what you've done well for decades.' One of the great tragedies of the budget before last was when the member for Rankin went to that dispatch box and gave his speech. The biggest contribution and allocation to agriculture was to shut down the live sheep trade. The biggest allocation that the Labor government gave to agriculture was to shut a trade down—$107 million of compensation to stop doing what the farmers had done for years. That's the way Labor treats our farmers, thumbing their nose and telling the farmers that they are doing a good job. That's the Labor way.

When it comes to critical minerals, we've got the Greens—and God help us all if they end up in a governance-sharing arrangement with Labor after the election—trying to stop mining. As a coalition, we are the ones who promote mining, and we will always do so. Labor is the complete opposite.

Tracey Roberts (Pearce, Australian Labor Party) Share this | Link to this | Hansard source

Today we celebrate a significant achievement. The Australian government has successfully created over one million jobs since May 2022. This milestone reflects the dedication of countless Australians contributing to our nation's recovery and growth. Under the Albanese Labor government, we have seen the largest increase in employment during a single parliamentary term in our history, with more than 652,000 of these being full-time positions. This accomplishment is particularly commendable given the global economic challenges, including pandemic effects, inflation and geopolitical uncertainties. The creation of these jobs demonstrates effective governance and a clear vision for a prosperous future. It signifies the commitment not only to recover from past setbacks but also to build a resilient economy capable of withstanding future challenges. These jobs created represent hope for families, stability for communities and opportunities for individuals to realise their dreams. This achievement is a collective effort and a collaboration between government, businesses and workforce.

I commend the Albanese Labor government for its unwavering support for Western Australia, recognising it is the engine room of our economy. Western Australia is not just a state. It drives economic growth through its vast resources. The state has consistently contributed significantly to national prosperity, accounting for over 20 per cent of economic growth in recent years, largely fuelled by critical minerals, energy resources and agricultural products. The Albanese Labor government's commitment to Western Australia is evident in policies prioritising job creation and economic stability. By investing in infrastructure, education and training programs tailored for Western Australians, we ensure that this state continues to thrive. Developing critical industries in Western Australia supports local economies and strengthens our nation's position in global markets.

One promising initiative is the introduction of production tax credits for critical minerals. These credits aim to encourage mineral processing in Western Australia and create secure jobs in the resources sector. The proposed critical minerals production tax incentive will provide a 10 per cent refundable tax offset, simulating investment and innovation in this vital area. Critical minerals are essential for modern technologies, from electric vehicles to renewable energy systems, and Australia is uniquely positioned to lead in the field. By fostering a robust critical mineral sector through these tax incentives, we ensure Australia remains a global competitor while ensuring jobs for future generations.

This initiative will attract domestic and international investment, driving innovation and creating high skilled jobs that are crucial for our economy. Moreover, these production tax credits will support local communities by encouraging sustainable practices in mineral processing. As we transition towards a greener economy, it is imperative to harness our natural resources responsibly—investing in cleaner technologies within Western Australia, whose mining sector sets an example for other nations while safeguarding our environment.

As we celebrate these achievements, we must recognise the importance of bipartisan support for these initiatives. I urge the opposition to reconsider their stance on production tax credits. Blocking such measures would hinder job creation and investment at a time when we need them the most. Supporting these credits is about securing a prosperous future for all Australians, especially those in Western Australia who rely on these industries for their livelihoods. The opposition have an opportunity here, not just to support government initiatives but to stand with Australian workers and businesses striving for growth and stability. By advocating for production tax credits, they can help ensure that Western Australia continues to thrive as an economic powerhouse while providing secure employment opportunities for thousands of families.

In conclusion, let us acknowledge the significant progress made together as a nation. The creation of over one million jobs is a testament to our resilience and commitment to building a stronger economy. As we look forward to the future, let us continue supporting policies that empower our workforce and invest in Western Australia as the engine room of our economy. Together, we can ensure that every Australian has access to secure employment and a bright future—a future where innovation flourishes, communities prosper and our collective potential is realised. Let us unite across party lines to champion initiatives benefiting not only Western Australia but all Australians.

Sam Lim (Tangney, Australian Labor Party) Share this | Link to this | Hansard source

On Saturday, when I was out doorknocking in the Parkwood area, a suburb in my electorate of Tangney, I was proud to share with my many constituents what the Albanese Labor government has done for Western Australia. Every single one of the 1.5 million WA taxpayers, including the 87,000 in Tangney, has received a tax cut, and every single one of the 1.1 million households has received energy bill relief.

We know Australians are doing it tough. We are doing everything we can to help to take the pressure off the cost of living—cheaper child care, cheaper medicine and a stronger Medicare. In my electorate of Tangney, the bulk-billing rate has increased by 2.5 per cent thanks to this government's record investing in bulk-billing. That means Tangney residents have had an additional 20,633 bulk-billed visits. Tangney residents have also saved more than $8 million on more than 80,000 cheaper scripts.

Under the Albanese Labor government more than 1.1 million jobs have been created. Unemployment is now four per cent. There is record participation and widespread job creation. Wages are growing. And we have made substantial progress on inflation. It is the first time in 50 years that Australia has had unemployment at four per cent or better at the same time as inflation has been below three per cent.

Western Australia is a key part of the Australia's economy. The world is changing, and the pace of change is getting faster. The global transition to net zero is the biggest transformation of the global economy since the Industrial Revolution. Our $22.7 billion Future Made in Australia policy will help us grasp a new generation of opportunities and bring the jobs and prosperity of the future to every part of our country.

Western Australia is front and centre when it comes to a future made in Australia. The Future Made in Australia plans build the foundation for a better future in Australia. It is about the many industrial and economic opportunities that come with the big global shift to net zero. It is about attracting and enabling investment, making Australia a leader in the renewable energy and value-adding to our resources. It is about science and innovation, skills and training to build Australia's future workforce, and investing in our people and places. Nothing could be more important to that than refining the lithium which will be such an important part of battery power and battery storage into the future.

Western Australia has a central role to play in refining and processing critical minerals. Our production tax incentives are about more investment and more jobs in Australia's resources sector. These tax credits are about ensuring local communities benefit as the world transitions to net zero. The legislation will give investors clarity and certainty to invest in Australia's potential to add more value to its natural resources and help deliver cheaper and cleaner energy. We want to drive private sector investment in new industries through production tax incentives for green hydrogen and processed critical minerals, structured in a way that the taxpayer only pays when an industry succeeds. This will help make Australia an indispensable part of the net zero economy of the future.

We are backing Australian ideas, innovation and science. We will create a new industry that will create new, secure jobs in the resource sector, and we will train the workforce of the future. This is standing up for Western Australia.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.